Step-by-step guide to starting a business in Switzerland

Just practical steps you can follow with ease and confidence to successfully start a business in Switzerland. 

Why choose Switzerland to launch your business? 

Switzerland offers more than scenic landscapes—it offers a business ecosystem built on precision, predictability, and trust. Entrepreneurs here benefit from a culture that values long-term thinking, regulatory clarity, and global connectivity. With four national languages, a highly international workforce, and one of the highest innovation indexes in the world, Switzerland serves as a launchpad for ideas that need both quality and credibility to thrive. 

What truly sets Switzerland apart is its unique mix of decentralised government and local autonomy, allowing businesses to choose cantons based on tax strategy, industry support, or talent availability. Whether you’re building a tech startup, launching a consultancy, or expanding into Europe, the Swiss framework gives you room to grow without drowning in red tape. 

For newcomers, the process of company formation in Switzerland may seem intricate—but with local support and a well-prepared plan, establishing a Swiss company becomes less of a hurdle and more of a strategic move. 

Understanding swiss business structures: a strategic choice

Choosing the legal structure of your business isn’t just paperwork—it’s a strategic decision that shapes how you operate, scale, and protect your interests. In Switzerland, the legal form you select has lasting implications on your taxation, liability, and internal governance during the Swiss registration process. 

Sole Proprietorship (Einzelfirma) 

Ideal for self-employed professionals, freelancers, and solo entrepreneurs. It’s the fastest to launch and requires no minimum capital, but there’s no legal distinction between personal and business assets—your own wealth is on the line if the business falters. 

General Partnership (Kollektivgesellschaft) 

Best suited for close-knit teams or family ventures. This structure fosters collaborative decision-making and shared responsibility but also binds each partner personally to the debts and risks of the company. A strong mutual agreement is essential. 

Limited Liability Company (GmbH/Sàrl) 

A popular and flexible option for SMEs, offering a solid middle ground between simplicity and protection. Shareholders are only liable up to their investment, and the company gains credibility with clients and institutions thanks to its formal legal identity. 

Public Limited Company (AG/SA) 

Designed for scale and serious capital. This structure is often chosen by businesses looking to attract institutional investors, issue shares, or prepare for international expansion. It comes with higher setup costs and reporting obligations—but also unmatched prestige. 

Selecting the right legal form sets the tone for everything that follows—from banking and bookkeeping to risk management and fundraising. Once you’ve made that call, the company formation in Switzerland begins: preparing your foundational documents, securing capital (if needed), and officially registering with the relevant cantonal authorities. 

At every stage, aligning your structure with your long-term goals is what turns a smart business idea into a sustainable Swiss company success story. 

Step-by-step process of company formation in Switzerland 

Here’s how you can start a business in Switzerland—broken down into clear, original steps: 

Market research 

Analyze your target customers and competitors. Find a gap in the market—maybe an unmet need in Zurich or Geneva. Use surveys, social media, and local forums to gather fresh insights. 

Choose company structure 

Pick the structure that matches your ambition: a cottage business? A GmbH adds credibility. Planning big? An AG might be your best bet. 

Company name and registration 

Brainstorm a business name that’s simple, memorable, and reflects your mission. Use the official Swiss Business Registry to ensure it’s free, then apply with your cantonal office for Swiss registration. 

Open a corporate bank account 

After picking a name, open a Swiss business bank account. For a GmbH, you’ll deposit CHF 20,000 as a buffer before registration. Many banks now support remote application. 

Drafting articles of association 

Create the constitution for your business. This legal document outlines who’s in charge, how decisions are made, and the company’s purpose. It’s mandatory for GmbHs and AGs. 

Notary and entry into commercial register 

Have your documents confirmed by a notary. Only then is your business officially entered in the company register Switzerland and earns its legal identity. 

VAT and tax registration 

Once launched, register for VAT if you expect turnover above CHF 100,000. Register with cantonal and federal tax offices for income and corporate tax. This ensures full compliance for your Swiss company. 

Company register and registration process 

Every legal business appears in the Switzerland company register—a public record detailing your company’s name, purpose, address, and structure. Registration is managed at canton-level offices. After submission, expect your registration number within weeks. This number is key for invoices, official documents, and business credibility in the Swiss business formation process. 

Costs and timelines for setting up a company in Switzerland 

Here’s what fresh entrepreneurs generally pay and when they can expect to launch during company formation Switzerland: 

• Sole trader: CHF 200–1,000; ready in 1–2 weeks. 
• GmbH: Registration fees of CHF 2,000–4,000 plus CHF 20,000 capital. Timeline: ~4 weeks. 
• AG: Fees of CHF 3,000–6,000 plus CHF 100,000 minimum capital. Timeline: ~5–6 weeks. 

During the setting up a company in Switzerland period, plan also for professional fees and accounting systems. Prompt photo ID, clear documents, and good communication speed things up. 

Requirements for foreign nationals 

Foreign founders are welcomed—but requirements vary: 

• EU/EFTA nationals: Can move to Switzerland for business with minimal paperwork. A residence permit linked to your company is usually enough. 
• Non-EU/EFTA nationals: Must have a Swiss residence permit and a business plan highlighting economic contribution (e.g., job creation, innovation). 

If you want to start a company in Switzerland especially from abroad, local support is highly advisable. We can assist with permits, applications, and compliance to ease your Swiss company formation journey. 

Taxes and accounting 

Once registered, your Swiss registration brings tax duties: 

• Corporate tax depends on your canton—ranging from about 11% to 21%. 
• VAT registration comes in at CHF 100,000 turnover. 
• Payroll, pensions, and insurance are essential if you hire staff. 

Every Swiss company must file annual financial statements. Professional accounting ensures you miss no deadlines and stay in good standing. 

Hiring employees and social insurance obligations 

Hiring your first employee? Here’s your to-do list: 

• Register them for social security (AHV/AVS). 
• Obtain accident and unemployment insurance. 
• Handle pension contributions (BVG/LPP). 
• Provide written contracts covering working hours, holidays, and termination rights. 
• Foreign workers need valid Swiss work permits, processed through the canton. 

Tips for small business in Switzerland

If you want to run a small business in Switzerland, keep these smart strategies in mind: 

• Start lean—rent shared office space or use coworking hubs. 
• Network with local chambers of commerce or meet-ups. 
• Offer top-notch customer service with Swiss punctuality. 
• Use simple bookkeeping tools to track income and expenses. 
• Engage a certified Swiss accountant early on. 

When you’re ready to start a business in Switzerland, these practical steps help you grow steadily and solidly. 

Final thoughts: Could Switzerland be the launchpad for your next venture? 

Switzerland isn’t just a great place to do business—it’s a smart place to build something that lasts. Behind the polished exterior of its cities lies a business ecosystem built on precision, trust, and long-term thinking. Whether you’re launching a high-tech innovation, a boutique consultancy, or a globally minded startup, Switzerland provides the kind of foundation that helps ideas grow with integrity. 

From a practical standpoint, you’ll find more than just low red tape and transparent processes—you’ll find a culture that rewards quality, fosters research, and values international cooperation. Add in the country’s multilingual population, strategic location, and consistent legal protections, and you’ve got an environment designed for entrepreneurs who mean business. 

But as with any meaningful journey, the first steps matter most. Choosing the right legal structure, navigating cantonal rules, and laying the groundwork for long-term success can feel complex—especially if you’re new to the Swiss system. 

That’s where LedgerPeek comes in. We don’t just give you a checklist—we walk alongside you, offering strategic insights, local expertise, and real-world support tailored to your vision. If you’re serious about launching your company formation in Switzerland, let’s make sure you do it the smart way—from day one.